Handling Tax Notices and Agency Updates

When you receive tax notices or agency updates for your company, it's essential to know what steps to take to ensure compliance and accurate updates to your payroll accounts. Dominion Payroll simplifies this process for you by maintaining a proactive Tax Compliance team to handle these updates. Follow the guidelines below:

Additionally, clients should forward any tax notices about balances due or payroll tax issues to their payroll contact for resolution. State agencies may also notify employers when they become liable for UI taxes; these liability notifications should be forwarded to Dominion Payroll to ensure proper setup and resumption of filings.

Dominion Payroll provides essential payroll services, including tax filing and payment processing. However, there are specific responsibilities that clients and Dominion Payroll must adhere to when managing tax accounts and unemployment rates. Clients are required to send any official tax rate change notices they receive, such as state unemployment (SUTA/SUI) rate letters, to Dominion Payroll. These notices are essential for ensuring that your account is updated accurately.

1. Receiving Unemployment Insurance (UI) Tax Rate Notices

When your company receives UI tax rate notices, act promptly using the steps below:

• Forward the notice to Dominion Payroll's Tax Team: Send all unemployment tax rate notices directly to Dominion Payroll for their review.

• Wait for a Follow-Up (If Required): The tax team will update your account with the new rates. If additional information is required, they will reach out to you.

• Forward Liability Notifications for UI Taxes: If you receive a notice indicating your company has become liable for UI taxes, send it to Dominion Payroll to ensure your setup is updated and filings resume as required.

These notices are critical because Dominion Payroll relies on client-provided information to ensure accurate updates to your account.

2. Handling Occupational Tax Notices or Other Agency Updates

For other tax notices or updates from agencies:

• No Immediate Action Required: Dominion Payroll's Tax Compliance team regularly reviews these notices and updates any necessary information internally.

• Follow Specific Instructions (If Needed): In the rare case that a notice requires specific actions from you, the team will provide clearly defined instructions.

• Forward Tax Notices About Balances Due or Payroll Tax Issues: Send these notices to your payroll contact so they can be routed to the tax department for resolution.

However, Dominion Payroll cannot apply state agency payment plans, such as those from the Mississippi Department of Employment Security, to an employer’s unemployment tax account. Additionally, only the account holder has the authority to update or close a company’s tax account with a state tax agency.

Understanding State Unemployment Insurance (SUI) Payments

• Payment Process: SUI is paid quarterly on your behalf, with the tax collected from each payroll.

• Finding SUI Payment Evidence:

  1. Quarterly SUI payment vouchers are available in the return archive of your reporting system.

  2. SUI amounts withheld per payroll can be found under Reporting > Report Archive > Payroll Summary for each pay run.

3. Summary of Action Steps

• Always forward UI tax rate notices to Dominion Payroll promptly.

• Trust that agency updates and non-UI tax notices will be reviewed and addressed by the Tax Compliance team.

• Respond promptly to any requests for additional information from Dominion Payroll. By adhering to these guidelines, you can ensure efficient handling of tax rate updates and agency communications without interrupting your payroll operations. If you do receive a tax notice from the IRS or a state agency regarding payroll taxes and are uncertain of its type, please do not hesitate to send it to tax@dominionpayroll.com or fax it to 804-355-3432. Our tax team will assist in determining the necessary steps and keep you updated throughout the process. ### Frequently Asked Questions

• Can Dominion Payroll apply a state agency payment plan to my unemployment tax account? No, Dominion Payroll cannot apply payment plans to a state agency account. They only handle unemployment tax liabilities based on wages reported through their system.

• Can Dominion Payroll update or close my company’s tax account with a state tax agency? No, only the account holder can update or close information with a state tax agency. Dominion Payroll’s TPA access is limited to filing returns and making payments. ## Understanding Third-Party Administrator (TPA) Access Dominion Payroll operates as a Third-Party Administrator (TPA), which allows them to file returns and make payments on your behalf. However, this access does not grant them the authority to update or close your company’s tax account with a state tax agency. Only the account holder has the authority to make such changes.

• Credits for Unemployment Tax Payments: If a credit is issued for a specific quarter, such as Q4 2025, no separate payment will be made for that period. This will be reflected in your reports.

• How will I know when I become liable for UI taxes? State agencies will notify you via a notice of liability or a failure-to-file notice. Forward this to Dominion Payroll for appropriate action.